01 Nov New Homes
Should I hire a home inspector for a new home?
You would think not since it is new and the developer has to adhere to local construction guidelines. However, err on the side of caution – always hire an inspector, whether the home is old or new.
You can ask the builder to provide copies of any inspection reports on the property, architectural plans, surveys and pertinent construction documents for your inspector to review.
The inspector should either be a professional home inspector, an engineer, an architect or a contractor. When hiring a professional inspector, look for one who belongs to a home inspection trade organization, such as the American Society of Home Inspectors (ASHI). This group has developed formal inspection guidelines and a professional code of ethics for its members. Membership in ASHI is not automatic. Proven field experience and technical knowledge about structures and their various systems and appliances are required.
As for rates, they vary greatly. Many inspectors charge about $400, but costs increase based on the scope of the inspection.
What else should I take into account when buying a new home?
You can find out more about an existing property and neighborhood before you buy than you can a new home in a newly developed community.
When the home is on the outskirts of town, ask the developer about future access to public transit, entertainment venues, shopping centers, churches, and schools. Also review local zoning ordinances. A remote area can quickly turn into a fast food haven. You want to ensure the neighborhood will not spiral out of control and lose its residential appeal.
Other things to consider:
- Ask homeowners already living in a development about the builder. If none currently live there, find out where the builder has previously built and speak to those owners to find out if the builder followed through on promises and needed repairs.
- Ability to make changes. Most homes in a development resemble each other. But the developer may impose restrictions on house color, landscaping, renovations, and other items that a homeowner may want to alter.
- Do not buy into the highfalutin images created by marketing experts. Form your own opinions about a property and only buy where you feel comfortable. After all, you are the one who will be living there.
Do builders provide financing?
Many builders offer financing incentives to help move more buyers into a project. In fact, major building companies often have their own mortgage brokerage subsidiaries, while many other builders routinely refer buyers to “preferred” local lenders. If it is a buyer’s market in your area, you can be sure developers will offer incentives such as low-down-payment financing or interest rate subsidies.